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Serving: United States
flooded home in Saline County Mindy Ward

Additional prevent plant payments coming soon

Producers who suffered flooding will receive additional payments from insurance provider through federal disaster aid

Producers who had a payable prevented planting indemnity in 2019 related to flooding will automatically receive a “top-up” payment, USDA announced Sept. 26. The payments will start in mid-October and come from insurance providers.

Producers with Yield Protection and Revenue Protection with Harvest Price Exclusion will receive a 10% top-up payment, while producers with Revenue Protection will receive 15%. They do not need to sign up to receive payments; all producers with a 2019 prevented planting indemnity will receive the top-up.

“As weather continues to throw wrenches into farmers’ plans, both in Western Minnesota and across the country, I appreciate USDA and crop insurance providers moving forward in delivering the prevented planting plus-up that Congress provided,” said House Agriculture Committee Chairman Collin C. Peterson of Minnesota. “This will provide direct help to farmers without additional paperwork and allow them to focus on the range of other challenges they face.”

The money was authorized in the Disaster Relief Act of 2019.

“USDA is working with AIPs so that producers can receive additional payments as soon as possible,” said Bill Northey, USDA’s Under Secretary for Farm Production and Conservation, “and we appreciate the AIPs for helping us help America’s farmers.”

Farmers Mutual Hail Insurance Company of Iowa said it’s working diligently to deliver the disaster payments as soon as possible.

“As a company that has been providing crop insurance for over 125 years, we know how one difficult year can mean ruin for many American farm families,” said Ron Rutledge, FMH president and CEO. “We are prepared to aid in the delivery of this much-needed disaster relief for our policyholders so they can get back to focusing on farming and providing for America.”

After the initial payment, additional payments will be made in the middle of each month as more prevented planting claims are processed.

“Crop insurance is an important program for many producers to help them manage their production and price risks,” said Martin Barbre, USDA Risk Management Agency administrator. “We’re leveraging that system to efficiently and effectively deliver much needed support to our farmers.”

RMA received commitments from all 14 Approved Insurance Providers to deliver the top-up payments:

ACE Property and Casualty (Rain and Hail) Insurance Company

American Agri-Business Insurance Company

American Agricultural Insurance Company

CGB Insurance Company

Church Mutual Insurance Company

Country Mutual Insurance Company

Farmers Mutual Hail Insurance Company

Great American Insurance Company

Hudson Insurance Company

NAU Country Insurance Company

Producers Agricultural Insurance Company

Rural Community Insurance Company

Stratford Insurance Company

XL Reinsurance America Inc.

The prevented planting top-up payments are different from the Wildfires and Hurricanes Indemnity Program Plus (WHIP+) payments. 

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